Hungary’s Economic Prospects Amid U.S. Tariffs

BUDAPEST (Reuters) – Hungary expects to sign a business deal with the U.S. in six months to mitigate the effects of tariffs imposed by President Donald Trump, according to Hungarian Prime Minister Viktor Orban in an interview with www.ot.hu on Thursday.

As a member of the European Union, Hungary’s car industry is a vital part of its economy and is at risk from potential U.S. tariffs. The nation is already facing a slower-than-expected economic recovery, alongside efforts to control inflation ahead of the 2026 elections.

“We are in talks with the Americans about economic issues which would be advantageous for us. The tariffs will be negative for us but we negotiate about other economic deals to offset those (tariffs),” Orban stated, without providing additional details.

On the same day, U.S. President Donald Trump and Italian Prime Minister Giorgia Meloni expressed optimism that a trade deal could be reached before the expiration of Trump’s 90-day pause on certain tariffs.

The EU faces 25% import tariffs on steel, aluminum, and cars, as well as broader tariffs on most other goods due to Trump’s policy aimed at targeting countries he believes impose high barriers to U.S. imports.

Orban, who has been an ally of Trump for at least a decade, also commented on the Republican party’s prospects, predicting they will remain in power for 12 years, characterized by nationalist American policies.